Life Insurance

The origins of life insurance can be traced back to the Roman empire (100 BC) when General Marius created a “burial club” to provide something for fallen soldiers’ families. More formalization took root after Lloyd’s of London was created in 1769. A group of professional insurance men formed the “New Lloyd’s Coffee House” as a place for underwriters to come together and trade insurance coverage. Insuring a life has been around for thousands of years as a risk mitigation strategy.

Today, the basic function of life insurance is to provide a certain amount of money to one’s beneficiaries at their demise. It exists for numerous reasons. In many cases it replaces income, pays off debt, or establishes funds for specific purpose. Current statistics show approximately 50% of all Americans have some form of life insurance.

For the professional hockey player covered under the most recent collecting bargaining agreement, a certain amount of coverage exists for each player. There is a Traditional life policy as well as one for accidental death.

The Clubs and the NHLPA shall maintain a group life insurance policy in a face policy amount of $1,000,000 U.S. per Player, for all Players who are on an NHL Insured Roster at any point during the season, with coverage commencing as of the first day on the Insured Roster and continuing in effect until November 1st of the following season. The Clubs and the NHLPA shall also maintain a group accidental death policy in a face policy amount of one (1) times the Player's current season's annual base salary up to a maximum of $15,000,000 U.S.

For some, the two policies through the CBA may be enough. For others it is not. These funds will ultimately be left to beneficiaries based on who you designate on the insurance form. Your beneficiary will use these funds to replace income, pay bills, take care of family, etc. The main question you need to answer is, “do we have enough?”

This leads to assessing your Insurance needs. Assessment consists of analyzing your budget/saving plan to address how much your family will need to continue to live their lives. Also, looking at extra or special funding needs like college education for children, specific debt repayment, or special legacy for parents or friends may be an issue. Insurance is a personal thing and needs to be reviewed in that light.

Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network®